Sunday, April 8, 2018

Indices Are At Or Near A Bottom

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Thursday March 29, 2018
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

The chaos that is unleashed on daily basis by Trump is keeping indices from rallying strongly to challenge their all-time highs.  It seems the chaos presidency is not going to end anytime soon and the market is starting to ignore it all and does what it needs to do.

On Friday, SPX successfully tested its 200 D-SMA.  Despite a nearly 3% sell-off by major indices, panic selling of indiviual issues was quite limited.  That is highly bullish and signals that indices are at or very close to a bottom. 

There is a good chance that SPX rallies on the back of good Q1 earnings and forecasts to test its 50 D-SMA and PDL-1 in the next couple of weeks.

SGS advanced significantly on Friday despite a nearly 3% sell-off by major indices.  That divergence is highly bullish and signals that higher prices are head.

Supports and resistances for SPX for the upcoming week are shown above.

My Plan

My plan is stay with my long QQQ positions.  A close below 200 D-SMA on a weekly basis would be a game changer.  In that case, I would close long positions.

Current Long-Term Portfolio (2018)
Past Long-Term Portfolios (2008-2017)

SPX: S&P 500 Index    SMA: Simple Moving Average
DJI: Dow Jones Industrial Index    EMA: Exponential Moving Average
DJT: Dow Jones Transportation Index    PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index    PUL: Primary Uptrend Line
RUT: Russell 2000 Index    ASL: Active Support Line
OEX: S&P 100 Index    ARL: Active Resistance Line
NDX: NASDAQ 100 Index    DTL: Dynamic Trend Line   
TUL: Tentative Uptrend Line   TDL: Tentative Downtrend Line
TLR: Trend Line Resistance   TLS: Trend Line Support

Disclaimer: The views expressed are provided for informational purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.